Exam 32: Inflation

Temporary changes in the price level caused by changes in the business cycle are called:

If an economy produces 3,000 units of output with a price level of $2 and with a velocity of money of 12,we know that the money supply must be:

If the real rate of return is 5 percent,and the inflation rate is 2 percent,then the nominal interest rate must be:

The net result of deflation is to:

Why is deflation such a problem?

If the real interest rate is above zero,we know that the nominal interest rate must be:

According to the quantity theory of money,changes in the price level are primarily the result of changes in the:

Borrowers:

Inflation is:

If the real rate of return is 2 percent,and the inflation rate is 2 percent,then the nominal interest rate must be:

When L.L.Bean decides to increase its prices due to general inflation,they must reprint the millions of catalogs they produce and distribute.The costs associated with doing so in response to inflation are called:

If the Fed doubled the money supply in one day,the amount of goods and services traded would:

Brian is paid monthly and typically takes $500 of his pay in cash to spend throughout the month,and the rest he leaves in an interest-bearing checking account.With the recent inflation,Brian finds it necessary to go to the bank every week,withdrawing $125 each time,so that his money can earn interest for as long as it can before Brian needs to withdraw it.The added hassle of going to the bank more often in response to inflation is called:

Deflation is:

The "Cross of Gold" speech was:

If the Fed were to allow unemployment to remain at a higher level than NAIRU:

Shoe-leather costs refer to:

Which measure of inflation best reflects changing prices for the average consumer?

An overall rise in prices in the economy is called:

If an economy produces 5,000 units of output with a price level of $1 and with a velocity of money of 4,we know that the money supply must be: